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Akhila Hebbar- 109

Anshika Singh- 114

Arun Xavier - 118Deepali Deore -142

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Definition:The difference between the value of export of goods and

the value of import of goods is defined as the Balanceof Trade(BoT)

When Value of exports > Value of Imports, then BoT issaid to be favourable

When Value of exports

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Foreign Trade since Independence:

The First Plan Period (1951-52 to 1955-56):

Rise in imports due to:Pent up demand of warShortage of food and Raw MaterialRise in capital goods

Trade Deficit largely due to programmes ofindustrialisation

Exports(Rs Crores) Imports (Rs Crores) BoT (Rs Crores)

622 730 - 108

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Foreign Trade since Independence:

The Second Plan Period (1956-57 to 1960-61):

Massive Industrialisation Programme

Foodgrains imports had to be resorted to overcome

internal shortages and rising prices

Exports(Rs Crores) Imports (Rs Crores) BoT (Rs Crores)

613 1080 - 467

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Foreign Trade since Independence:

The Third Plan Period (1961-62 to 1965-66):

Rapid Industrialisation

Increase of Defence Needs

Large Quantities of foodgrains imported

Exports(Rs Crores) Imports (Rs Crores) BoT (Rs Crores)

747 1224 - 477

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Foreign Trade since Independence:

The Fourth Plan Period (1966-67 to 1973-74):

India Devalued Rupee by 36.5% in 1966

Better Crop Production during 1968-69

Favourable BoT for the 1st time in 1972-73(+104 crore)

Exports(Rs Crores) Imports (Rs Crores) BoT (Rs Crores)

1810 1973 - 163

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Foreign Trade since Independence:

The Fifth Plan Period (1974 to 79):

Hike in Oil Prices started in Oct 1973High Import bills due to petroleum,fertilizers and

foodgrainsSignificant improvement in Exports

2nd

Favourable BoT in1976-77(+69 crore) In 1978,Janata party followed a policy of haphazard import

liberalisation

Exports(Rs Crores) Imports (Rs Crores) BoT (Rs Crores)

4728 5538 - 810

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Foreign Trade since Independence:

The Sixth & Seventh Plan Period (1980 to 1990):

Increase in Price of Petroleum products by OPEC

Govt. approached IMF for a huge loan in Nov 1981

Then, a slight decline in POL because:

Global prices of oil ..downward trend

Increased Production by ONGC

Plan Period Exports

(Rs Crores)

Imports

(Rs Crores)

BoT (Rs Crores)

1980-85 8967 14683 -5716

1986 -90 17382 25112 -7730

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Foreign Trade since Independence:

The Eight and Ninth Period (1980 to 1990):

Liberalization Policy & Reduction of custom duties

Slowdown in Indias Foreign Trade due to

South East Asian Crisis

Continued recession in Japan

Economic crisis in Russia in 1998

Plan Period Exports(Rs Crores)

Imports(Rs Crores)

BoT (Rs Crores)

1992-97 86557 97609 -11352

1997 -02 168400 204763 -36363

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Foreign Trade since Independence:

The Tenth Plan onwardsPlan Period Exports

(Rs Crores)Imports(Rs Crores)

BoT (Rs Crores)

2002 - 03 255137 297206 -36363

2003 04 293637 359108 -65741

2004 05 375340 501065 -125725

2005 06 456418 660409 -203991

2006 07 571779 840506 -268727

2007 08 655864 1012312 -356448

2008 - 09 840752 1374435 -533683

2009 - 10 784268 1237707 -453439

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Widening Trade Deficit

India underestimated the impact of South East AsianCrisis

Increased Competition from China and Taiwan

Exports of Textiles affected

Failure of large industrial houses to boost exports

Non Tariff barriers created by developed countries

Use of Anti dumping duties by these countries haveaffected exports

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Composition of Indias Foreign trade

Pattern of Imports:

Import

Bulk

PetroleumProducts

Cereals,Pulses,etcFertilizers, Iron &

Steel,etc

Non Bulk

Capital goods Export Items

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Composition of Indias Foreign trade

Structure of Indian Imports:2000 01 (%) 2008 09(%)

1]Bulk Imports 95095 (41.2) 627486 (45.6)

A)Petroleum, Crude & Products 71497 (31) 419967 (30.6)

B)Bulk Consumption Goods 6593 (2.8) 22883 (1.6)C)Other Bulk Items 17005 (7.4) 184635 (13.4)

2] Non Bulk Imports 135778 (58.8) 746949 (54.4)

A)Capital Goods 40847 (17.7) 330384 (24.1)

B)Mainly Export Related Items 36815 (15.9) 146860 (10.7)

C)Others 58116 (25.2) 269704 (19.6)

3] Total (1]+ 2]) 230873 (100) 1374435 (100)

All figures in Rs. Crores

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Composition of Indias Foreign trade

Pattern of Exports:

Export

Agricultureand AlliedProducts

Ores andMinerals

Manufacturedgoods

Mineral fuelsand lubricants

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Composition of Indias Foreign trade

Structure of Indian Exports:1980 - 81(%) 2008 09(%)

1]Agriculture and Allied Products 2057 (30.6) 80648 (9.6)

2]Ores and Minerals 413 (6.2) 35877 (4.3)

3] Manufactured Goods 3747 (55.8) 566402 (67.4)

4]Petroleum Products & Mineral fuel 28 (0.4) 123397 (14.6)

5)Others 465 (6.9) 34428 (4.1)

6] Total 6710 (100) 840752 (100)

All figures in Rs. Crores

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Exporting Countries

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Importing Countries

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Measures taken to Correct

Deficit

Devaluation

Cash Assistance

Income Tax Concessions

Import Concessions

Convertibility of the Rupee

Export- Import Bank

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19/20

Challenges

External Factors:

Low World Demand Restrictions on our goods entering foreign countries

Competition from countries like China

Internal Factors:

Increasing Domestic Demand

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